Disadvantage of corporate form of Business

Which one of the following is a disadvantage of the corporate form of business? 1. Limited liability for shareholders 2. Ability to raise capital through issuing stocks 3. Double taxation of profits 4. Ease of transfer of ownership Option 3 is the answer. Double Taxation is the disadvantage of the corporate form of business. To … Read more

Importance of Insurance


Why is it important to have Insurance ?  Introduction Insurance is a safety arrangement for unexpected problems like health issues or accidents. Insurance can be defined as a financial arrangement which provides protection against financial losses and uncertainties in exchange for regular premium payments. It is a contractual agreement between two parties i.e. individual/entity and … Read more

Implications of BCG Matrix


Introduction The BCG Matrix is a strategic management tool. It was developed by Boston Consulting Group as a framework for analyzing a company’s portfolio based on two factors. The BCG Matrix has a wide range of implications. This stands as a significant strategic framework for understanding the business and managing its unit/product portfolio. This matrix … Read more


The concept of the gray market involves conducting market operations outside the formal authorized setting. This concept is very common among the market participants. Sometimes exchange or trade of stock takes place prior to the stocks being listed in any authorized market, based on speculation. Such a market stands as a gray market.  Some of … Read more

What is a Gray Market ?


Introduction Gray market is a market economy concept. It can be defined as a marketplace where the transaction of goods (stocks and commodities) take place through unauthorized channels, which may not be officially recognized. In simpler terms, any market place that is not officially recognized, may or may not be legal, is a gray market.  … Read more

Limitations of Limited Liability Company (LLC)


Despite all the above characteristics which make Limited Liability Company (LLC) a favorable structure, there are some shortcomings (Limitations) of Limited Liability Company structure. Some of such disadvantages are: Growth Opportunities LLC  structures have limited growth opportunities. LLC have capital structure restrictions and in case of any growth options, LLC cannot easily change its capital … Read more

Limited Liability Company (LLC): Meaning and Features


Introduction Establishment of a corporation can take many forms. Limited liability company (LLC) is one such business structure. LLC is a business formation where the personal assets of owner/s are protected from the business liability. As the name suggests, owners have limited their business liability in terms of any losses. It is a hybrid legal … Read more

Reasons for Credit Suisse Collapse

Credit Suisse failure

Introduction Credit Suisse is one of the renowned multinational investment bank and financial services companies founded in 1856 in Switzerland. With its headquarter in Zurich, Switzerland, Credit Suisse provides a wide range of  services such as banking, asset management and financial services across the continent. Established as a Swiss Credit Institutions, the financial institution has … Read more

Economic Forecasting Techniques


Introduction Economic forecasting simply means making informed predictions about future economic conditions, opportunities, trends and developments. This includes assessing and analyzing the historical evidence and current economic scenarios to make projections about macro variables of the economy. Macro-economic variables include GDP growth, inflation rates, unemployment rates, interest rates etc. Elliott, G. and Tinnermann, A. describe … Read more